OPENING CALLS:
| Class III Milk Futures: | Mixed |
| Class IV Milk Futures: | Mixed |
| Butter Futures: | Mixed |
OUTSIDE MARKET OPENING CALLS:
| Corn Futures: | 3 to 5 Lower |
| Soybean Futures: | 6 to 9 Lower |
| Soybean Meal Futures: | $1 to $3 Lower |
| Wheat Futures: | 5 to 8 Lower |
MILK:
Class IV futures continue to be the strength of the market. New highs are a regular part of most days. Underlying cash butter and nonfat dry milk provide strong support. It feels as if Class III futures are being supported by the strength of Class IV. Cheese prices have not followed but have remained in a range. Class III futures have pushed higher over the past three weeks while block cheese price is 9 cents lower and barrels are 11.75 cents lower over that period of time. It will be interesting to see whether cheese prices will increase or if futures will adjust lower. Milk production is not overwhelming the market with processors having sufficient capacity to handle current milk supplies. Spot milk is available at a discount in many areas, allowing plants to purchase extra if needed. USDA will release the World Agricultural Supply and Demand report at 11 a.m. CDT Friday, which contains milk production, milk price and product price estimates for this year and next year.
CHEESE:
Blocks and barrels keep swapping the lead with barrels moving back above blocks again. It seems the market is balanced with buyers and sellers comfortable doing business at current levels. Prices are expected to continue to remain in a range in the near term.
BUTTER:
Butter remained steady Thursday with price possibly at a level at which buyers may have reached a threshold. Retail sales have been slowing a little due to high price, but overall demand both domestically and internationally remains strong. Churning has been active but has slowed a bit due to lower cream supplies. There is sufficient butter to meet demand.
